中文简体
Position:
Land and Building Transfer Tax | Indonesia Tax Guide 2025 (29)
Indonesia Land and Building Transfer Tax 2025-02-26 09:13:09   Page view：695

This issue's introduction

Overview

Tax payable



Chapter 8

Land and Building Transfer Tax

Overview

The taxpayer of the Land and Building Property Acquisition Tax (Bea Pengalihan Hak atas Tanah danBangunan, hereinafter referred to as "BPHTB") is the transferee of the land and building property rights.


As part of local taxation, BPHTB must comply with the relevant provisions of the Local Taxation and Penalty Regulations, and the applicable tax rate is 5%.


Taxable land and building property transfers include sales, trade-in transactions, grants of inheritance, donations to companies, equity divisions, auctions with designated buyers, execution of legally binding court decisions, mergers, consolidations and expansions, and prize distribution.

The BPHTB should be paid before the notarization of the land and building property transfer deed. In the case of mergers, consolidations or expansions, the tax should be paid when the merger, consolidation or expansion documents are signed. In the case of auctions, the tax payable should be paid on the day the auction announcement is signed.

The notary public shall not sign the property transfer deed before the taxpayer has paid the tax in full.


Tax payable

The BPHTB is based on the acquisition price of the taxable object. In most cases, the tax is calculated based on the higher of the market (transaction) price and the acquisition price.

The tax payable is calculated by multiplying the acquisition price by the applicable tax rate (5%) less the allowable non-taxable limit.

The non-taxable limit varies by region and is as low as IDR 60 million.

For inheritance of land and building property rights, the minimum non-taxable limit is IDR 300 million. The government may issue an ordinance to change the non-taxable limit.

The excitement continues in the next issue…


Previous： Tax Administration: Tax System Organization and Responsibilities | Indonesia Tax Guide 2025 (30) Next： Land and Building Transfer Tax | Indonesia Tax Guide 2025 (28)